The Albanese Government did not make any changes to the stage three tax cuts however announced some significant and wide-ranging proposals.
The Treasurer highlighted the Budget’s five-point plan:
Cheaper child care
Cheaper medicines
Expanded paid parental leave
More affordable housing
Getting wages moving again
Personal income tax
· No changes to the currently legislated personal income tax arrangements
· Digital currencies will not be taxed like foreign currencies
· Extend ATO Personal Income Taxation Compliance Program
Business owners
· Depreciation – allowing taxpayers to self-assess effective life of intangible depreciating assets
· Powering Australia – Electric Car Discount - The Government will cut taxes on electric cars so that more Australians can afford them.
· Extend ATO Compliance Programs – Shadow Economy Program
· Extend ATO Compliance Programs – Tax Avoidance Taskforce
· Improving the integrity of off-market share buy-backs
· New Energy Apprenticeships
· New Energy Skills Program - The Government will provide $9.6 million over 5 years from 2022–23 to support Australia’s workforce to transition to a clean energy economy.
· Paid Family and Domestic Violence Leave – small business assistance
· Secure Australian Jobs
· Buy Australian Plan - The Government has committed to the 10-point Buy Australian Plan to support Australian businesses to compete more effectively, increase employment and build resilience in supply chains.
· Supporting Small Business Owners - The Government will provide $15.1 million over two calendar years from 1 January 2023 until 31 December 2024 to extend the Small Business Debt Helpline and the New Access for Small Business Owners programs to support the financial and mental wellbeing of small business owners.
· Unlegislated tax measures announced by the previous Government
Superannuation
· Expanding eligibility for downsizer contributions from 60 to 55 years of age.
Social security
· Plan for Cheaper Child Care - increase the maximum Child Care Subsidy (CCS) rate from 85 per cent to 90 per cent
· Boosting Parental Leave to Enhance Economic Security, Support and Flexibility for Australia’s Families
· Incentivising Pensioners to Downsize
· Incentivise pensioners into the workforce
· Lifting the Income Threshold for the Commonwealth Seniors Health Card
· Plan for Cheaper Medicines
Aged care
· COVID-19 Package – aged care
· Fixing the Aged Care Crisis
· Implementing Aged Care Reform
Philanthropy – updates to specifically listed deductible gift recipients
Housing Accord - The Australian Government will provide $350.0 million over 5 years from 2024–25 to support funding of an additional 10,000 affordable homes under a Housing Accord with state and territory governments and other key stakeholders.
Safer and More Affordable Housing
o The Government will invest $10 billion in the newly created Housing Australia Future Fund, to be managed by the Future Fund Management Agency, to generate returns to fund the delivery of 30,000 social and affordable homes over 5 years
o establish the Regional First Home Buyers Guarantee to support eligible citizens and permanent residents who have lived in a regional location for more than 12 months to purchase their first home in that location with a minimum 5 per cent deposit
o broaden the remit of the National Housing Infrastructure Facility to directly support new social and affordable housing
New cyber security measures - providing cyber security services to agencies with fewer resources as part of its whole-of-Government Cyber Hub program uplift package.
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